Financial and ESG Highlights

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Capcom’s Value Creation
Value Creation Model
History of Value Creation
Major Intellectual Properties (IP)
Financial and ESG Highlights
Business Segments Highlights
Medium- to Long-Term Vision
Medium- to Long-Term
Growth Strategy
CEO Commitment
The COO’s Discussion of Growth Strategies

Case Study: Analysis of a Global Hit

Analysis of Successful PDCA Examples
Financial Strategy According to the CFO
The Heart of
Value Creation
The Passion and the Prowess to Compete Globally
Resident Evil 2
Devil May Cry 5
Mega Man 11
ESG-Based
Value Creation
The Head of Development Discusses Human Resources Strategy
Society and Capcom

Capcom and the Environment
Corporate Governance

Directors

Features of Capcom Corporate Governance

Corporate Governance Structure and Initiatives

Major Discussions at Board of Directors Meetings and Audit and Supervisory Committee Meetings Held in Fiscal 2017

Risk Management
Financial Analysis
An Analysis of the Market and Capcom
Market Analysis

Latest version is available on the "Online Integrated Report 2020" top page.

Financial and ESG Highlights Present

ESG Highlights

At Capcom, we believe that sustainable growth is achieved by delivering social and economic value, while at the same time building healthy relationships with stakeholders from the unique perspective of a game publisher. This entails tackling social issues through our business activities, such as training human resources capable of succeeding on the global stage, and the creation of new markets through cutting-edge technology. To address the above, we have selected four material issues for ESG.

We believe that the principle of Sustainable Development Goals (SDGs), namely that "all cultures and civilizations can contribute to sustainable development," and our own corporate philosophy, which is that we are "creators of entertainment culture that stimulates your senses," are closely related.

As such, we will contribute to the development of a sustainable society by promoting our growth strategy and clearly addressing these material issues.

ESG Initiatives and Future Challenges

Initiatives

Contribution to Business

Future Challenges

Reduced CO₂ emissions by switching to LED lighting
Constructed new environmentally-friendly buildings
Reduced exhaust gas and resources used via distribution network sharing with other companies in the industry
Reduced paper resources used through the digitization of instruction manuals

Reduced costs (used less electricity, cut distribution costs)

Increasing energy conservation at existing buildings through renovation
Further conserving energy in amusement facility operations

Relationship with Employees

Actively employed non-Japanese citizens
Increased number of women in management positions
Held Health and Safety Committee meetings
Implemented staff training
Implemented discretionary work system

Expanded global reach through game development based on a diverse set of values
Acquired competent creators
Improved creator productivity
Fostered a commitment to legal compliance

Increasing the percentage of women in management positions
Training of human resources globally

Relationship with Customers

Compliance with the CERO ratings system
Formulated guidelines with industry groups

Improved customer satisfaction by creating stress-free environments for play
Reduced social risks posed by games

Education of manufacturers, users, consumer groups, government entities, etc.

Relationship with the Regional Community

Welcoming children participating in Company Visits to our offices / holding Guest Lectures at schools
Regional revitalization making use of Capcom content
Supported senior citizen community formation with video game arcade tours

Expanded profit opportunities by improving company and IP name recognition

Further promotion of regional revitalization using Capcom content

Increased dialogue with shareholders
Transitioned to a company with an audit and supervisory committee
Raised the ratio of external directors
Established a nominating committee (voluntary)

Evaluated proper corporate value on both financial and non-financial bases
Avoided managerial decision-making risk through better management monitoring
Ensured the appropriateness of growth strategies by having the Board of Directors consider a range of views
Perpetuated the founder’s business know-how

Increasing the number of opportunities for persons in charge of development to converse with the market
The effective operation of the audit and supervisory committee system
Board of Directors effectiveness assessments and their utilization
Setting developer compensation in consideration of medium- to long-term sustainable growth

Material Issue (1) Securing and Training of Human Resources　[KPI]Number of Developers (people) / Internal R&D ratio (%)

We are working to secure and train outstanding developers based on our desire to make the most entertaining games in the world, which has resulted in a nearly three-fold increase in developers over the past 10 years. We are working to improve the technical skills and motivation of our employees by such means as developing a system to train up new graduates to be fully capable team members within three years, promoting younger and mid-career employees to work on major titles, and putting together an environment that empowers developers to create the games they want to create.

Material Issue (2) Promoting Diversity　[KPI] Ratio of Female Employees /Ratio of Foreign Employees (%)

Securing a pool of human resources with diverse thinking is an important element for developing world-class games. For that reason, we are promoting diversity, working on building a workplace where women can excel, and actively hiring foreign nationals. We are tying this into the creation of all-new intellectual properties and successful, unconventional collaborations.

Material Issue (3) Development of Solid Relationship with Society　[KPI] Number of School Visits (Educational Support) (Times)

Based on the desire to promote understanding in society of video games, Capcom holds Company Visits, where we welcome children to our offices, and Guest Lectures at schools, both tailored to elementary and junior high school students. In addition to providing information on what it’s like to work at a game company, and delivering career education on the variety, joy, difficulty, and importance of these jobs, we offer advice on game literacy, or how to maintain a healthy relationship with games.

Material Issue (4) Enhancement of Corporate Governance　[KPI] Ratio of External Directors (%)

Generally, an owner-run company excels at being flexible and fast decision-making, though concerns may exist over the issue of succession. At Capcom, we strive to make management more transparent and visible, and have implemented various governance reforms to this end, such as the Nomination and Remuneration Committee. We proactively appoint external directors, with 45.5% of our directors now being external directors.

Sustainable Development Goals (SDGs)

Set by the United Nation’s more than 150 member states at the UN Sustainable Development Summit 2015, held in September of the same year, the SDGs lay out 17 goals for the world to focus on with the aim of eliminating poverty and achieving global sustainability.

[External Link] United Nations Sustainable Development Goals

SUSTAINABLE DVELOPMENT GOALS